A new study from Forrester Research shows that just over half of US consumers …

A newly released study from Forrester Research shows that while some customers like the concept of à la carte cable, they don't want to pay very much for it. À la carte cable is a concept that has support from a couple of camps but for different reasons.

Some cable customers dig the idea because they hope it will enable them to get only the channels they actually want to watch from cable companies. Some federal regulators—like Federal Communications Commission chairman Kevin Martin—are in favor because they believe it will give families another tool to keep sex and violence out of the house.

Consumers don't want to pay too much for à la carte, however. On average, those participating in Forrester's study said they would be willing to pay $24 per month for 26 à la carte channels. That's a bit over half of what cable customers typically for full cable packages of around 100 channels, and a figure that Forrester analyst James McQuivey says is not realistic because it does not reflect programming costs. Only 53 percent of those participating in Forrester's study indicated any interest at all in tiered programming packages.

The cable industry isn't a fan

Cable companies have remained steadfast in their opposition to offering à la carte cable, although there have been a handful of "family-friendly" packages offered so far. Time Warner was one of the first companies to announce such a package in late 2005. Its "Family Choice" package was available on top of basic cable and would cost an additional $12.95. It includes such kid-friendly programming as the Disney Channel, Toon Disney, C-SPAN 2, and HGTV. Wait... C-SPAN 2?

Family Choice packages aside, the cable industry has argued that forcing it to offer à la carte programming will lead to higher cable bills for everyone. According to the National Cable Television Association, cable networks would face a significant reduction in ad revenue and subscription fees, driving some of the less-popular networks off the air. There are also a number of agreements with networks that give the cable providers price breaks on popular channels in exchange for agreeing to carry some of the niche channels. The NCTA cites a report from consulting firm Booz Allen Hamilton estimating that up to three-quarters of those niche, ethnic, and other "emerging" networks could be driven off the air via à la carte offerings.

Waffling by the FCC

The FCC has gone back and forth on the issue over the years. In 2004, the FCC criticized the concept of tailored programming packages, saying that their research showed that it would result in higher prices while bringing few benefits to consumers. After criticism from consumer advocacy groups like the Parents Television Council, the Commission reversed course a year later.

Calling its original analysis "faulty," the FCC determined that, after a second look, à la carte cable was indeed "in the best interests of consumers." But instead of focusing on the economic benefits of tiered cable service, Martin said that it would give families the opportunity to "pick and choose and pay for only those networks they want in their homes."

Martin has tried to bring the cable industry around to his way of thinking, suggesting that à la carte is actually beneficial to cable companies because it would enable them to offer more targeted advertising. "But the sad truth, as both you and your commercial clients know, is that no one actually knows how many people are watching each channel, much less how many are watching each commercial," Martin said during a speech in January. "Providing cable channels on a more à la carte basis would decrease the uncertainty for advertisers and their clients."

Congress has yet to pick up the à la carte ball and run with it, although a handful of lawmakers have expressed their support for the concept. With consumers having an unrealistic idea of what it should cost, cable companies opposed to offering it, and the FCC lacking the regulatory authority to impose it, it looks like full-course meals will be continue to be the norm when it comes to cable menus.

Eric Bangeman
Eric has been using personal computers since 1980 and writing about them at Ars Technica since 2003, where he currently serves as Managing Editor. Twitter@ericbangeman